SWITZERLAND Trends and Developments Contributed by: Liburn Mehmetaj, Roxane Allot and Andreas Hösli, Walder Wyss Ltd
Guidelines by causing environmental harm and adverse human right impacts, and by failing to conduct adequate due diligence in connection with a coal mine in Colombia. • Outcome: Closure of Specific Instance with - out agreement. The submitting parties with - drew the case, on the grounds that in their view the negotiations on the terms of refer - ence for the mediation had irrevocably failed. BankTrack, Worth Rises and Coalition for Immigrant Freedom / UBS, Barclays, HSBC and Swiss National Bank (2024) • At issue: The submitting parties alleged that the Swiss National Bank and three Commer - cial Banks had breached the Guidelines by failing to conduct human rights due diligence concerning investments into US-based private prison companies accused of human rights violations including forced labour. The submission was filed with the NCP of Swit - zerland and the NCP of the UK. • Outcome with respect to the Swiss National Bank: Non-acceptance of the Case. The Swiss NCP decided that due to the Swiss National Bank’s (non-commercial) public mandate of conducting monetary policy, the Guidelines are not applicable to the Swiss National Bank’s asset management activities. • Outcome with respect to the three commer - cial banks: Concerning UBS (NCP Switzer - land), the case was pending (as at mid-2025). Concerning the two UK-based commercial banks (HSBC and Barclays), the case was referred to the UK NCP. Key trends and developments Two key developments are particularly notewor - thy. First, there has been a gradual but unmistakable integration of environmental, social and human
rights considerations into the day-to-day com - pliance practices of Swiss companies. While the legal framework remains relatively narrow, with binding due diligence obligations currently lim - ited to child labour and conflict materials, com - panies are increasingly operating in a regulatory environment shaped by international standards. The Guidelines, along with the UN Guiding Prin - ciples on Business and Human Rights, have become key reference points for not only civil society, but also investors, auditors and super - visory authorities. The adoption of far-reaching due diligence leg - islation within the European Union, including the Corporate Sustainability Due Diligence Direc - tive, has further raised expectations for Swiss companies, particularly those with cross-border operations or value chains involving high-risk jurisdictions. Consequently, even in the absence of a comprehensive statutory obligation, an increasing number of Swiss businesses are implementing structured human rights impact assessments and mitigation frameworks in anticipation of future legal convergence and in response to mounting reputational, contractual and financial pressures. In addition, robust due diligence processes concerning BHR and (often interrelated) environmental issues have proven useful as a valuable risk-management tool. The second development concerns the role of the Swiss NCP for the OECD Guidelines. While it was often overlooked in the past, the NCP is now playing an increasingly visible role in medi - ating and publicising business and human rights grievances involving Swiss-based multinational enterprises. Although the mechanism is non- judicial in nature and its outcomes are not bind - ing, recent cases have demonstrated its practi - cal influence. Statements issued by the NCPs are being scrutinised more closely by the media,
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